BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF
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IN THE MATTER OF THE APPLICATION OF MATAGORDA PRODUCTION
COMPANY FOR THE EXTENSION OF THE FIELD RULES FOR THE PRODUCTION OF GAS AND
ASSOCIATED LIQUID HYDROCARBONS FROM THE |
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CAUSE NO. 491 DOCKET NO. __________ |
COMES NOW Applicant, Matagorda Production Company, by and through its attorneys, Burns, Wall, Smith and Mueller, P.C., and in support of this Application, states and alleges as follows:
1. By Order No. 491-1, entered on December 17, 1990, the Commission established 320-acre drilling and spacing units for the production of gas and associated liquid hydrocarbons from the Mesa Verde Formation consisting of the E/2 and W/2 or the N/2 and S/2 of each section to be determined by the operator of the first well drilled on the section, with the permitted well to be located in the NW/4 and SE/4 of each section but no closer than 460 feet from the boundaries of the unit for the following described lands in Moffat County, Colorado:
Township 8 North, Range 91 West, 6th P.M.
Sections 2, 3 and 4: All
Sections 9, 10 and 11: All
Township 9 North, Range 91 West, 6th P.M.
Sections 33 and 34: All
2. The lands subject to this Application are the following described lands (the “Additional Lands”):
Township 8 North, Range 92 West, 6th P.M.
Section 1: All
Section 12: All
Township
8 North, Range 91 West, 6th P.M.
Section 5: All
Section 6: All
Section 7: All
Section 8: All
Applicant is the owner of substantially all of the oil and gas leasehold interest in the Additional Lands. The Additional Lands are underlaid by the Mesa Verde Formation, which is a common source of supply thereunder.
3. For the purpose of conservation, the prevention of waste and the protection of correlative rights, the 320-acre spacing pattern established for the Fortification Creek Field should be extended to the Additional Lands for the production of gas and associated liquid hydrocarbons from the Mesa Verde Formation. Drilling of more wells than one on every 320-acres to the Mesa Verde Formation on the Additional Lands will result in the drilling of unnecessary wells and represent waste. Drilling units of this size will not be smaller than the maximum area that can be efficiently and economically drained by the necessary wells and represent wastes.
4. Applicant is filing an application for a permit to drill the Morgan Creek 1-43 Well in the SE/4SE/4 of Section 1, Township 8 North, Range 92 West, 6th P.M., 470 feet from the South line and 1259 feet from the East line of said Section 1, which represents an exception location under Rule 318(c), but is a permitted location under the field rules established for the Fortification Creek Field. The spacing unit for this well is the E/2 of Section 1, also described as Lots 13, 14, 19, 20 and SE/4 of Section 1, Township 8 North, Range 92 West, 6th P.M.
5. The names and addresses of the only interested parties, being all leasehold owners and unleased mineral owners in the Additional Lands, according to the information and belief of the Applicant, will be provided separately with a Certificate of Service.
WHEREFORE, Applicant respectfully requests that this matter be set for hearing by the Commission; and that notice thereof be given as required by law; and that following such hearing the Commission enter on Order:
(a) Including the Additional Lands in the Fortification Creek Field and establishing 320-acre drillsite spacing units for the Additional Lands for the production of gas and associated liquid hydrocarbons from the Mesa Verde Formation, in compliance with the field rules of the Foundation Creek Field;
(b) Allowing the Morgan Creek 1-43 Well to be drilled at the proposed location for the drillsite spacing unit consisting of the E/2 of Section 1, Township 8 North, Range 92 West, 6th P.M., also described as Lots 13, 14, 19, 20 and SE/4 of Section 1, Township 8 North, Range 92 West, 6th P.M.; and
(c) For such other further findings and orders the Commission may deem proper and advisable in this matter.
DATED this day of November, 2002.
Respectfully submitted,
BURNS, WALL, SMITH AND MUELLER, P.C.
By:
Peter J. Wall, #4158
Telephone: 303-830-7000
Facsimile: 303-830-6708
APPLICANT’S ADDRESS:
Matagorda Production Company